TORONTO - Hudson's Bay Co. is getting a helping hand from a competitor that went out of business, but even that boost hasn't been enough to keep the company from reporting a loss.

The department store giant's chief executive officer Helena Foulkes revealed in a Wednesday earnings call that "we have certainly capitalized this year on the closing of Sears."

The Toronto-based company also shared that the January closure of Canadian Sears stores and HBC's Saks Fifth Avenue luxury brand both helped it deliver a smaller overall third-quarter loss than last year.

The retailer's net loss for the period ended Nov. 3 was $164 million or 69 cents per share, including discontinued operations. That's down from last year's third quarter net loss of $243 million or $1.33 per share, including discontinued operations.

Your free trial has come to an end.

We hope you have enjoyed your trial! To continue reading, we recommend our Read Now Pay Later membership. Simply add a form of payment and pay only 27¢ per article.

For unlimited access to the best local, national, and international news and much more, try an All Access Digital subscription:

Thank you for supporting the journalism that our community needs!

People leave and enter the Hudson Bay Company store in Toronto on November 1, 2017. THE CANADIAN PRESS/Nathan Denette

TORONTO - Hudson's Bay Co. is getting a helping hand from a competitor that went out of business, but even that boost hasn't been enough to keep the company from reporting a loss.

The department store giant's chief executive officer Helena Foulkes revealed in a Wednesday earnings call that "we have certainly capitalized this year on the closing of Sears."

The Toronto-based company also shared that the January closure of Canadian Sears stores and HBC's Saks Fifth Avenue luxury brand both helped it deliver a smaller overall third-quarter loss than last year.

The retailer's net loss for the period ended Nov. 3 was $164 million or 69 cents per share, including discontinued operations. That's down from last year's third quarter net loss of $243 million or $1.33 per share, including discontinued operations.

However, there were some bright spots in the company's earnings. Sales across the HBC brands increased by 5.6 per cent to $2.2 billion, as sales from Saks Fifth Avenue grew by 7.3 per cent, making it the sixth quarter of consecutive growth.

Digital sales also spiked by eight per cent, largely because the company's popular Bay Days sales event moved from the fourth to the third quarter.

The company has been defending itself from recent criticism from its most vocal critic, activist investor Land and Buildings Investment Management LLC.

In a letter sent to shareholders in late November, Land and Buildings hammered HBC's board for failing to take decisive action to unlock value for shareholders.

Land and Buildings said it believes HBC could double or triple its share price and find benefits by selling Saks Fifth Avenue, its remaining 50 per cent interest in its European business to Signa Holding GmbH, and Lord and Taylor to a mass merchant.

It also believes HBC should pursue real estate investment trust status for its Canadian real estate and sublease excess space at its Bay department stores.

HBC did not comment on the matter on its Wednesday call.

Want to get a head start on your day?

Get the day’s breaking stories, weather forecast, and more sent straight to your inbox every morning.

Instead, it focused plenty of its time on discussing its European efforts. HBC listed its European arm as a discontinued operation after agreeing to sell its controlling interest during the second quarter.

HBC Europe had $974 million of sales in the third quarter and a net loss of $41 million, down from $107 million.

It also struck a deal to merge its German department stores with its biggest rival in the European market, Signa Retail Holdings.

"We've taken bold actions to streamline the retail business," said Foulkes.

"The European partnership with Signa creates a stronger, better, capitalized retailer that's well positioned to succeed in the market and our ownership in this entity gives us the exposure to the significant opportunity for improved results at what is now Germany's leading retailer."

You can comment on most stories on The Winnipeg Free Press website. You can also agree or disagree with other comments.
All you need to do is be a Winnipeg Free Press print or digital subscriber to join the conversation and give your feedback.

Have Your Say

Have Your Say

Comments are open to The Winnipeg Free Press print or digital subscribers only. why?

Have Your Say

By submitting your comment, you agree to abide by our Community Standards and Moderation Policy. These guidelines were revised effective February 27, 2019. Have a question about our comment forum? Check our frequently asked questions.